Signet(SIG)2025-06-03 10:59Financial Performance - Sales for Q1 Fiscal 2026 were $1.54 billion, an increase of $30.8 million or 2.0% compared to Q1 of FY25[5]. - Same store sales (SSS) rose by 2.5% compared to a decline of 8.9% in Q1 of FY25[6]. - Adjusted operating income increased to $70.3 million, up from $57.8 million in Q1 of FY25, representing an adjusted operating margin of 4.6%[8]. - Diluted earnings per share (EPS) improved to $0.78, compared to a loss of $0.90 in Q1 of FY25, while adjusted diluted EPS was $1.18, up from $1.11[9]. - Gross margin was $598.8 million, an increase of approximately $26 million from Q1 of FY25, with a gross margin rate of 38.8%[7]. - Net income for the quarter was $33.5 million, a decrease from $52.1 million year-over-year[23]. - Basic earnings per share were $0.79, compared to a loss of $0.90 in the prior year[23]. - Total operating income for the first quarter of Fiscal 2026 was $48.1 million, a decrease of 3.4% compared to $49.8 million in the first quarter of Fiscal 2025[27]. - Adjusted EBITDA for the first quarter of Fiscal 2026 was $113.8 million, an increase from $101.5 million in the prior year[47]. Guidance and Future Expectations - Fiscal 2026 total sales guidance is updated to $6.57 to $6.80 billion, with same store sales expected to range from (2.0%) to +1.5%[14]. - Adjusted diluted EPS guidance for Fiscal 2026 is raised to a range of $7.70 to $9.38, compared to the previous range of $7.31 to $9.10[14]. - The company expects capital expenditures of approximately $145 to $160 million for the fiscal year[16]. Cash and Assets - Cash and cash equivalents at the end of the quarter were $264.1 million, down from $729.3 million in Q1 of FY25 due to share repurchases and debt retirement[10]. - Total assets decreased to $5,451.9 million from $5,726.6 million year-over-year[24]. - The company reported a net cash used in operating activities of $175.3 million for the quarter[25]. - Free cash flow for the 13 weeks ended May 3, 2025, was $(211.9) million, compared to $(181.5) million for the same period in the prior year[39]. Inventory and Store Operations - Inventories increased to $2,006.5 million from $1,937.3 million, indicating a rise in stock levels[24]. - The company operated 2,633 stores as of May 3, 2025, a decrease of 9 stores from the end of Fiscal 2025[28]. - The company reported a total of 2,371 stores in the North America segment after 5 openings and 13 closures[29]. Segment Performance - North America segment sales increased by 2.3%, while international segment sales saw a 1.5% increase at constant exchange rates[26]. - North America segment adjusted operating income rose to $97.1 million, a 14.0% increase from $85.2 million in the first quarter of Fiscal 2025[41]. - The International segment reported an adjusted operating loss of $7.0 million, unchanged from the previous year[42]. Tax and Other Financial Metrics - The effective tax rate for the first quarter of Fiscal 2026 was 26.5%, up from 11.1% in the same quarter of the previous year[45].